Here’s how to know if it’s a good time to sell your rental property.
If you’re a rental owner, you’ve probably had some tenants living on your property for a few or even several years, and it might have been a while since you last did some upgrades or raised rents. This is an excellent opportunity for you to decide whether you want to sell the property now, leave your tenants in the property, or upgrade it and rent at a higher rate.
I came across a client a couple of months ago who was in that exact situation. He had told his tenant, who had lived in his rental for eight years, that he was going to raise her rent by $300 a month. She chose not to renew the lease.
I ended up making a deal with him that we would list the property for sale for two weeks. We discussed what sale amount he would need to part from the property. We ended up selling the property for $2,000 more than he had wanted, and he was able to use his equity to buy another rental property.
If he hadn’t sold the property for the amount he wanted, he would have just done the upgrades and decided between re-renting the property at double the rent he was charging or re-listing the property on the market with the upgrades. Either way, it was a win-win situation.
Now there are some opportunities associated with raising rental rates. I met with a client a few weeks ago who owned several properties throughout our area. He told me that as his leases expire, he doubles the rent. That is an excellent opportunity for you to put a little extra profit in your pocket.
I should say, however, that it has been difficult over the last six months to get vendors to do some of those upgrades, so if you have questions or need any assistance there, please let us know. Our agents can give you a hand.
In the end, as a landlord and a property owner, I’ve never seen so many options for you to increase your profits, be that through the sale of your property or raising your rents. If you have any questions about this or other real estate topics, don’t hesitate to give us a call or send an email. We’d love to hear from you.